How can we expect to see the growing New Zealand casino market change post-regulation?

Over the last few years, there have been plenty of news stories covering the different approaches to the complexities of regulating online gambling. Some countries have been early adopters and embraced the opportunity that online gambling represents. In contrast, others have held back and waited for more data and better technology before dipping a toe in the pool of regulation.

Some countries have extended their existing legislation to cover online gambling, with appropriate additions and amendments where necessary. Others have used the advances in technology as an opportunity to overhaul their gambling legislation altogether, sometimes with radical changes as a result.

New Zealand is one of the latter, and the changes proposed to their gambling laws represent a significant shift in the focus of gambling laws toward consumer protection and player safety. Instead of being industry-driven, the new legislation is being designed with input from several bodies outside the world of gambling, including healthcare professionals and consumer rights organisations.

What changes will there be?

Like many countries that have overhauled their gambling regulations, there is a strong emphasis on establishing a robust licensing system. Currently, there is little to distinguish a legitimate casino from one with dubious security and limited customer service, and the introduction of a licensing framework is set to eliminate the bad-faith sites and enhance the appeal of those operating within the law.

The new system will be administered by the Department of Internal Affairs, and licenses are expected to be available by 2026. Operators must meet all the conditions required to be considered for a license, and a limited number will be auctioned off to providers who can demonstrate their commitment to fair, safe online gaming.

How will players be affected?

This kind of overhaul inevitably benefits players the most as it comes with stringent requirements for licensees that make it much easier for players to establish whether they are using a legitimate site or not.

The terms of the licenses will include rigid restrictions on the degree and nature of advertising allowed by online casino operators. There will be a limited number of licenses available only to the best of online casinos in New Zealand to avoid flooding the market and creating an online casino ‘boom’.

Are the new laws popular?

Usually, big changes to regulations such as these have detractors as well as supporters, but this piece of legislation is unusual in as much as there isn’t much to criticise. The goal is to make gambling a safer pastime and help players maintain a healthy approach to casino gaming as a form of entertainment.

One casino operator has already gone on record to say that they approve of the changes to the legislation, and well, they might. The main downside for the websites involved is that there will be restrictions on the way they are allowed to advertise, but the expectation is that this will be more than balanced out by the trust their players will have in them on the back of the new licensing system.

Some casino operators will have to implement a variety of measures to ensure that they are license-ready, but these will all be to the benefit of the consumer. With licenses at a premium, only the best will be granted permission to operate out of New Zealand, so there might be a bit of a scramble among existing operators to ensure that they are in a position to bag the gaming equivalent of a ‘golden ticket’.

The Malta Gaming Authority is one of the world’s foremost gambling regulators, and their worldwide reputation has brought a huge amount of business to the tiny island. By embracing the benefits of online gaming, they have boosted their economy and earned global recognition for their forward-thinking approach to gaming.

Benefits of the changes

Even non-gamblers should benefit from the new regulations as the effective legalisation of homegrown online casino gaming means that money that was previously going offshore will now stay in the New Zealand economy and boost the turnover of the country significantly.  As part of their election campaign, the National Party claimed that offshore operators would also be taxed, generating a potential NZ$ 179 million per year, which could be used to the benefit of its citizens, and this is the first step in realizing that pledge.

For those who currently use offshore gambling sites, the option to use a homegrown online casino will be made more appealing by the knowledge that New Zealand casinos will be held to high standards of customer service and consumer protection.

New Zealanders may have a while to wait before they see the results of the proposed changes. Still, operators are already working hard to ensure that they are ready to deliver a thoroughly modern casino experience.